The relationship between trade and poverty has been in the academic and policy agenda for a long time. In spite of this, no consensus has been reached so far as to whether trade has an unambiguously positive effect on poverty. The purpose of the present study is to identify the effect of trade on wellbeing of Kyrgyz households employing household survey data â€œLife in Kyrgyzstanâ€ from 2010 to 2013. By constructing the measure of demand shock for agricultural commodities produced by the households and interacting it with a measure of natural trade openness, the production and consumption channels of the effect of trade on poverty are explored. Due to the limitations with some of the data and not employing the panel structure of the dataset at this stage of the analysis, preliminary results do not tell a consistent story. However, future measures to improve both the data quality and the methodology are presented in detail throughout the paper.